The much-anticipated initial public offering (IPO) of Capillary Technologies India is finally set to make its stock market debut tomorrow, Friday, November 21. This marks a significant milestone for the Indian tech startup ecosystem.
Overwhelming Investor Response
The public offering witnessed an explosive response from investors across all categories. The bidding process, which opened on November 14 and concluded on November 18, was subscribed a massive 52.95 times on the final day.
Data from the National Stock Exchange (NSE) reveals that the ₹877.5-crore IPO received bids for a staggering 44,38,95,325 shares against the 83,83,430 shares that were on offer.
A closer look at the subscription data shows a particularly strong appetite from different investor groups. The portion reserved for non-institutional investors was oversubscribed 69.84 times, while Qualified Institutional Buyers (QIBs) bid 57.27 times their allotted quota. The Retail Individual Investors (RIIs) category also showed robust interest, fetching a 15.82 times subscription.
Strong Grey Market Premium and Listing Expectations
Market trends in the unofficial grey market suggest a powerful listing is on the horizon for Capillary Technologies. According to market watchers at investorgain, the shares are currently commanding a grey market premium (GMP) of ₹57.
This GMP indicates a high level of investor confidence and willingness to pay above the issue price. Based on this premium, the estimated listing price for the IPO is projected to be around ₹634 per share. This represents a potential gain of approximately 9.88% over the upper end of the IPO price band.
IPO Structure and Fund Utilization
The mainboard IPO comprised a fresh issue of 60 lakh shares worth ₹345 crore and an offer for sale (OFS) of 92.3 lakh shares totaling ₹532.50 crore.
The company had set the IPO price band in the range of ₹549 to ₹577 per share. For retail investors, the minimum investment for one lot of 25 shares was ₹14,425 (at the upper band), with the option to invest up to ₹1,87,525 for 13 lots.
Capillary Technologies plans to utilize the net proceeds from the fresh issue for several strategic initiatives. These include:
- Meeting cloud infrastructure costs.
- Investing in research, design, and development of its products and platform.
- Purchasing essential computer systems for its operations.
- Funding inorganic growth through potential acquisitions.
- General corporate purposes.
The book-running lead managers for this landmark issue are JM Financial, IIFL Capital Services, and Nomura Financial Advisory and Securities (India) Private Limited. MUFG Intime India Pvt. Ltd. is the registrar for the IPO.
